Tenaris Competitors

Part
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Part
01

Tenaris Competitors

Teneris is a leader in the OCTG market in North America. Some of its main competitors are Vallourec, NSSMC, TMK, U.S. Steel Tubular, Voest Alpine A.G., and Evraz Group S.A. All the information about its competitors has been included in the shared document in rows 4-7, columns D-H. Some data was not available and had to be triangulated.

Main Competitors in the OCTG segment in North America

1) Vallourec

  • Vallourec is a French group over 100 years old and a global leader in tubular solutions, for the Oil & Gas market, industry and power generation. 72% of its revenue is derived from the Oil & Gas Market and 33% from North America.
  • In its annual report, Vallourec does not disclose OCTG revenue specifically for North America.
  • However, this figure can be estimated as 72% of Vallourec's revenue is generated by its Oil & Gas activities, which we can assume are equivalent to its OCTG segment.
  • Vallourec's revenue in North America has been published as 1,280,853,000 euros.
  • If we make the assumption that 72% of its North American revenue is generated by Oil & Gas, similarly to the whole company, we can estimate the value of OCTG revenue for North America.
  • Thus, the calculation 72%*1,280,853,000 = 922,214,160 euros
  • The conversion in U.S. dollars has been made using the exchange rate at the end of the fiscal year, on 31rst December 2018.
  • Therefore, 922,214,160 euros = $1,054,820,000.

2) PAO TMK (“TMK”)

  • TMK is a Russian group founded in 2001 that manufactures and sells seamless and welded pipes.
  • It is one of the world leaders in the manufacture and supply of steel piping for the Oil & Gas industry.
  • The 2018 revenue for OCTG products in North America is not given in the annual report.
  • However, it can be estimated using the sales volume in tons of OCTG products in North America.
  • The price of a ton of OCTG is evaluated at $1,500/ton and the volume sold in North America stood at 580,000 tons in 2018.
  • Therefore, the estimated revenue for OCTG products in North America in 2018 was 1,500*580,000 = $870,000,000.

3) US Steel Tubular

  • U.S. Steel is a large American steel company, with three segments: North American Flat-Rolled, U. S. Steel Europe and Tubular Products.
  • U.S. Steel Tubular is the subsidiary of U.S. Steel in charge of OCTG production.
  • The company is specialized in the manufacturing of piping for the Oil and Gas and the Petrochemical industries.
  • Net sales for the tubular segment reached $1,231,000,000 in 2018.
  • As the exact figure of OCTG sales is not given for U.S. Steel and financial data for its subsidiary US Steel Tubular is not disclosed, being a private company, we can assume that the net sales for the tubular segment can be used as an estimate for OCTG sales in North America.

4) Voest Alpine A.G. of Austria

  • Voest Alpine A.G. is a large Austrian steel group organized in 4 divisions: Steel, High Performance Metals, Metal Engineering, and Metal Forming.
  • Its metal engineering division is responsible for producing seamless piping for the Oil & Gas sector.
  • In 2018, the metal engineering division in the NAFTA region produced revenue of 3,147 million euros.
  • 23% of that revenue was generated by the Energy sector, which mostly includes the Oil & Gas sector.
  • 20% of that total revenue was generated in the NAFTA region, or 642.8 million euros.
  • If we make the assumption that 23% of its North American revenue is generated by Energy and Oil & Gas, similarly to the whole company, we can estimate the value of OCTG revenue for North America.
  • Thus, the calculation 23%*642,800,000 = 147,660,000 euros
  • The conversion in U.S. dollars has been made using the exchange rate at the end of the fiscal year, on 31rst March 2019.
  • Therefore, 147,660,000 euros = $165,617,000.

5) Evraz Group S.A.

  • Evraz is a Russian steel and mining group and a major producer of OCTG products globally.
  • The company is a leader in the OCTG market in Canada.
  • The 2018 revenue for OCTG products in North America is not given in the annual report.
  • However, it can be estimated using the sales volume in tons of OCTG products in North America.
  • The price of a ton of OCTG is evaluated at $1,500/ton and the volume sold in North America stood at 310,000 tons in 2018.
  • Therefore, the estimated revenue for OCTG products in North America in 2018 was 1,500*310,000 = $465,000,000.




Part
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Part
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OTCG North American Market Size

The Oil Country Tubular Goods (OCTG) market size of North America is projected to reach $16.10 billion in 2019. The details are presented in the attached spreadsheet.

Oil Country Tubular Goods (OCTG) Market Size: North America

  • According to a recent report by Micro Market Monitor, the industry valuation of North American OCTG market is estimated to reach $16.24 billion in 2019, registering an annual growth of 4.80%.
  • Mordor Intelligence's market research report estimated the market size of the North American OCTG industry to be valued at $12.7 billion in 2014. The report projected the sector to grow at a CAGR of 4.95% and reach a valuation of $16.17 billion in 2019.
  • According to a recent report by Brandessence Market Research, the global market size of the OCTG industry will reach $51.32 billion in 2019, growing at a CAGR of 7.02%.
  • Daleel, a business intelligence portal, estimates the contribution of the North American OCTG industry to be about 31% of the global OCTG market in 2019. Hence, the market size of the North American OCTG industry is calculated to be about $15.90 billion in 2019.
  • According to Beroe Inc, the direct cost of manufacturing accounts for nearly 46% of the total OCTG market, followed by the costs of raw materials at 30%, overheads at 11%, and freight costs at 7%.
  • It is found that all the market research reports classified the North American region to comprise the United States of America, Canada, and Mexico. Hence, we have considered the market size of North America to include all the three countries.

Research Strategy

We started our research by identifying credible market research reports that featured the global and regional market size of the OCTG industry. We referred reports from Mordor Intelligence, Beroe Inc, Daleel, Brandessence Market Research, and Micro Market Monitor. To ascertain our findings, we considered cross-referencing the market size from multiple reports that featured the value and growth estimates for the industry in North America. We were able to successfully identify the North American OCTG market size and growth from research reports by Mordor Intelligence and Micro Market Monitor. Alternatively, we confirmed the market size of the North American region by identifying the market share of North America in the global OCTG market. It is found that the global OCTG industry is estimated to reach $51.32 billion in 2019, and North America will hold a market share of nearly 31%. We found three estimates for the North American OCTG market size and considered calculating the mean value for the same.

It is found that all the market research reports classified the North American region to comprise the United States of America, Canada, and Mexico. Hence, we have considered the market size of North America to include all the three countries.

CALCULATIONS:
1) According to Micro Market Monitor, the North American OCTG industry is valued at $16.24 billion.
2) According to Mordor Intelligence, the North American OCTG industry is valued at $16.17 billion.
3) According to Brandessence Market Research, the global OCTG industry is valued at $51.32 billion. Additionally, Daleel estimates the market share of the North American region to be about 31%. Hence, the market size of the North American OCTG industry is calculated to be valued at $15.90 billion ($51.32 x 31% = $15.90 billion).

The mean market size of the North American OCTG industry is calculated to be ($16.24 billion + $16.17 billion + $15.90 billion) / 3 = $48.31 billion / 3 = $16.10 billion.
Part
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Part
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Tenaris Competitors: Market Share

Tenaris has an estimated market share of 21% of the North American oil country tubular goods (OTCG) market. Vallourec and TKM have been estimated to have a North American market share of 6.55% and 5.4%, respectively, in the OTCG industry. These details have been added to the attached spreadsheet.

Tenaris and its Top Five competitors Market Share

  • Tenaris' net sales in North America was $3.38 billion (calculations below) in 2018, translating to a market share of almost 21% of the North American OTCG market.
  • Vallourec and TKM have been estimated to have a North American market share of 6.55% and 5.4%, respectively, in the OTCG industry.
  • U.S. Steel Tubular and Voest Alpine A.G. have been estimated to have a North American market share of 7.65% and 1.03%, respectively, in the OTCG industry.
  • Evraz Group S.A. has an estimated North American market share of 2.68% in the OTCG industry.

Research Strategy

To determine the market share of Tenaris' competitors, we used the revenue data in row 7 and the market size in row 1 of the attached spreadsheet to calculate each company's share of the North American market. On the other hand, to determine the market share of Tenaris itself, we leveraged the data points provided in its 2018 annual report.

Calculations

Tenaris

According to Tenaris' annual report, its net sales in 2018 was $7.66 billion. The tubes business segment accounted for 94% of its business while sales in North America was 47% of total sales. Based on the aforementioned information, Tenaris' North American revenue in the OTCG segment is:
OTCG Net Sales: 94% of $7.66 billion = $7.2 billion
North American OTCG Net Sales: 47% of $7.2 billion = $3.38 billion

From the previous reports, we estimated the market size of the North American OTCG market at $16.10 billion. Therefore, Tenaris' market share in the North American OTCG market is:
($3.38 billion/$16.10 billion) * 100 = 20.99%

Vallourec

North American Revenue: $1,054,820,000
OTCG Market size: $16.10 billion
Therefore, the market share is:
($1.055 billion/$16.10 billion) * 100 = 6.55%

TMK

North American Revenue: $870,000,000
OCG Market Size: $16.10 billion
Therefore, the market share is:

U.S. Steel Tubular

North American Revenue: $1,231,000,000
OCG Market Size: $16.10 billion
Therefore, the market share is:

Voest Alpine A.G.

North American Revenue: $165,617,000
OCG Market Size: $16.10 billion
Therefore, the market share is:

Evraz Group S.A.

North American Revenue: $465,000,000
OCG Market Size: $16.10 billion
Therefore, the market share is:
($0.465 billion/$16.10 billion) * 100 = 2.89%


Part
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Part
04

Tenaris Competitive Landscape, Part 1

Unlike its competitors, Tenaris is globally present and has strong regional presences. The company claims it is the leading steel pipe manufacturer and supplier, but its dependence on import causes it to see high production costs. In the attached spreadsheet, rows 9, 10 and 11 have been filled with the requested information. The lack of publicly available customer reviews has been explained in the "Research Strategy" section of the brief.

TENARIS

Strengths


Weaknesses


Unique Selling Proposition


VALLOUREC

Strengths


Weaknesses


Unique Selling Proposition

  • The company positions itself as the "innovator" in the field, describing innovation as one of the key pillars of company's success.


TMK

Strengths


Weaknesses


Unique Selling Proposition


RESEARCH STRATEGY

Despite far-reaching search, the research team was unable to locate customer opinion on any of the three companies under investigation. Given that these business primarily supply industry businesses, it seems likely the buyers haven't published their opinions specifically surrounding companies' OTCG products.

First, we reviewed supplier databases such as go4worldbusiness and eWorldTrade. There, we had hoped to locate steel tube ratings from buyers, but came across a roadblock when we determined companies' OTCG products weren't sold on these marketplaces.

Then, we turned to manually reviewing third-party industry-specific publications such as Argus Media and World Oil. Since these companies operate on a business-to-business basis, we were hoping to locate third-party reports or news stories on opinions of customers of these companies, but the attempt wasn't successful because no reports described customer opinions surrounding the companies' steel tube products. Instead, available reports focused on companies' trade deals and tariffs, without mentions of customer stories.

We also attempted to find customer forums, blogs or feedback platforms these companies operate, in order to manually review customer feedback and derive at the general sentiments. Even though the companies described their relations with customers on their websites, the companies didn't have dedicated blogs, forums or feedback platforms and didn't provide specific customer reviews or sentiments.
Part
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Part
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Tenaris Competitive Landscape, Part 2

U.S. Steel Tubular, Voest Alpine and EVRAZ are diverse competitors in the steel production industry. Information about each company's strengths, weaknesses, competitive advantage and customer ratings have been added to the attached spreadsheet.
  • U.S. Steel Tubular is a fully-integrated producer, therefore able to control their strict quality standards from melt to delivery.
  • Voest Alpine integrates its social responsibility and environmental standards directly into its quality management process to give the company a holistic approach to satisfying customer demands.
  • EVRAZ uniquely owns its own mining company and deposit location, so it can supply itself with local, raw material for its Russian production facilities.

Research Strategy

For each of the three companies, we synthesized their strengths, weaknesses and competitive advantages using information on their websites and news reports about each company. However, we were unable to locate any customer reviews, ratings or other opinions about any of the companies in question. We first did a broad search for any customer ratings within Google or possibly on other business listing websites that commonly aggregate reviews/ratings. This turned up no results, likely because they are extremely industrial companies supplying other industrial customers. Such a market is not one that usually garners external reviews, at least not left on the internet in the same manner as a restaurant of B2C product for sale. Nevertheless, we persevered, hoping we could find statements or quotes from customers, perhaps in a news story or published in a report. None of the companies even had testimonials or "successful" customer statements on their own websites.

In this case, we would have to conclude that customer opinions about these three companies would be good-to-moderate, as we also could not find any negative opinions or press about their products. There was no information about safety recalls or quality failures, major contracts lost or anything that would suggest a poor opinion of their products. U.S. Steel and EVRAZ both have reviews on Glassdoor, but these are from employees, not customers. None of the reviews within mention customers' opinions.
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Part
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Tenaris Competitors: Technologies / Innovations Personnel, Part 1

In rows 13-22, columns C-E of the attached project spreadsheet, the requested information on key personnel involved with new technology/innovation/new products, at the companies Vallourec, TMK, and Tenaris has been provided.

Summary of Findings

Research Strategy

We commenced our research on the leadership/management pages of each company's website, to identify the key personnel involved with the development of new technology/innovation/new products. Once we identified the executive who fit the criteria, we proceeded to identify their LinkedIn pages and retrieve information on their professional background. In cases where the required executive was not listed on the company website, we made use of the employee list on the company's LinkedIn page.

At the end of our research, we were unable to identify any LinkedIn page associated with Sergey G. Chikalov, who is the Vice President for Technological Development and Technical Sales at TMK. This led to the conclusion that Mr Chikalov does not have a LinkedIn page, as at the time of our research.

Regarding the emails of the executives, we made use of third-party email finders such as Snov.io and Hunter.io, since the email was not listed on the company website or the LinkedIn pages of the individuals. We have provided screenshots of the emails in a Google document for confirmation.
Part
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Part
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Tenaris Competitors: Technologies / Innovations Personnel, Part 2

Lou Krizmanich and David Hathaway are senior people at U.S. Steel Tubular responsible for new technology, innovation and new products. The requested contacts for U.S. Steel Tubular, Evraz Group S.A., and Voest Alpine A.G. have been entered into rows 13-22 of the attached spreadsheet.

U.S. Steel Tubular

  • Lou Krizmanich has been the Director of Innovation and Quality at U.S. Steel Tubular since 1996. He graduated from the University of Pittsburgh Swanson School of Engineering in 1995.
  • David Hathaway has been the Vice President Engineering and Innovation at U.S. Steel Tubular since 2000.

Voest Alpine A.G.

  • Walter Berger is the Managing Director, CTO at Voest Alpine. He has been with the company since 2011. Previously he worked at Böhler Schweisstechnik Austria GmbH.
  • Dominik Grasser is the R&D Coordinator / Innovation Manager at Voest Alpine. He has been with the company since 2018. Prior to joining Voest he was studying at Technische Universität Graz.

Evraz Group S.A.

  • Aleksey Ivanov is the Senior Vice President, Commerce and Business Development at Evraz. Prior to joining Evraz in 2002 he worked at Liggett-Ducat.
  • Alexander Erenburg is the Vice President, Vanadium Division. He graduated from Novosibirsk State University.
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Part
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Tenaris Competitors: Technology Adoption, Part 1

Tenaris shows notable inclination towards adoption of new technology through its registered technologies such as Pipe Tracer, Dopeless Technology, and Rig Direct Portal.

External National Review

  • In 2019, Asociación Nacional de Empresarios de Colombia (ANDI) and Dinero magazine, named Tenaris's TuboCaribe welded pipes mill in Cartagena as one of the nine most innovative companies in Colombia.
  • The innovation review looked at 322 companies. Tenaris was ranked third in the emerging innovators category and second in the number of patents.
  • Technology like Pipe Tracer®, a mobile application by Tenaris that gives customers updated pipe data and removes the need for manual tally and status reports was one of the factors which accounted for Tenaris' innovation in oil and gas markets.

New Digital Platform and Reinforced Supply Chain

  • In 2019, Tenaris presented a new digital platform — the Rig Direct® portal, which was aimed at streamlining business processes through connecting Tenaris and its customers in a dedicated digital space for the management of product dispatches, the tracking of trucks from Tenaris service yards to customer rig sites, as well as invoicing.
  • In 2017, Tenaris acquired an Oklahoma-based pipe services and trucking company, Garrett LLC — to complement its Rig Direct™ service model, streamlining the supply chain with direct delivery.

New "Dopeless" Technology.

  • Tenaris has also developed trademarked Dopeless technology, a dry multifunctional coating applied in a fully automatic process at Tenaris mills worldwide. The process guarantees that the exact amount of lubricant is applied to each connection.
  • Tenaris' dopeless technology was used as recent as in 2019 in Total’s Culzean project where Tenaris reportedly pushed the limits of its high-pressure/high-temperature technology using Dopeless technology.

Hydril Aquisition

  • In 2007 Tenaris acquired Hydril a leading North American manufacturer of premium connections and pressure control products for oil and gas drilling and production, which has reportedly established an outstanding reputation in the industry for the quality and reliability of its technology.
  • TenarisHydril Blue® Max was also used in 2019 Total’s Culzean project carried out by Tenaris.

PAO TMK Aquisition

  • In 2019 Tenaris announced that it has entered into a definitive agreement to acquire from PAO TMK, a Russian company and manufacturer of steel pipe, 100% of the shares of its wholly owned U.S. subsidiary IPSCO Tubulars, Inc.
  • IPSCO Tubulars is a U.S. domestic producer of seamless and welded OCTG and line pipe product whose technological expertise was expected to bring additional welded, heat treatment and finishing facilities to Tenaris' offerings.

Summary statement of the company's openness to adopting new technology

  • Tenaris S.A. is a holding company which operates through Tubes business segment. The Tubes segment includes the production and sale of both seamless and welded steel tubular products, and related services primarily for the oil and gas industry, principally oil country tubular goods (OCTG.)
  • In order to strengthen its technologies the company has made significant acquisitions such as Pipe Tracer, Dopeless Technology, and Rig Direct Portalas well as Garrett LLC for Rig Direct and Hydril, a company with outstanding reputation in the industry for the quality and reliability of its technology.
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Part
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Tenaris Competitors: Technology Adoption, Part 2

Vallourec has, over the last two years, illustrated a commitment to embracing new technology to position itself as a market leader in the industry. The technologies they have adopted have been used to position themselves as a company with a strong customer-centric focus. Vallourec sees the incorporation of new and innovative technologies as key in forming partnerships in the industry and positioning themselves as a market leader. The information requested has been summarized in the attached spreadsheet.

Examples of Vallourec's Openness to New Technology

  • In May 2019, Vallourec launched an Open Innovation Platform. The platform is a website that has been designed specifically to develop partnerships to produce augmented pipes.
  • In March 2019, Vallourec launched Smartengo. Smartengo is an eCommerce platform. It marked the first step in a digital journey that will create value for customers. The platform will be expanded to include more products and regions over time.
  • Vallourec.smart was launched in late 2018 at the Rio Oil and Gas Conference. The product combines the digital and physical skills of the company to allow it to develop into a global customer-centric and digital partner.
  • This brand aims to improve customer service through innovative digital services. The brand will complement the tubular solutions offered by Vallourec that are the backbone of the worldwide reputation the company has established in this industry.
  • Vallourec established a plant in Brazil with the Industrial Internet of Things infrastructure. It is a pilot plant, and they hope to use it as a starting point to develop similar plants in the future.
  • The machines in the plant are digitally connected, allowing the collection of information regarding process parameters and tube characteristics. They aim to improve quality and machine consumption through the use of this technology.

Research Strategy

By evaluating precompiled information on the company website, including media releases and promotional materials, we were able to find examples of technology Vallourec has adopted over the last two years. Based on the examples, we determined that the company is willing to adopt new technology.
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Part
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Tenaris Competitors: Technology Adoption, Part 3

A superficial review suggests that TMK actively embraces innovation and new technology, particularly given the company's fairly consistent declaration that it is a leader in the areas of innovation and new technology within the company's corporate website and public reporting. However, a more detailed review of TMK's acquisition and joint venture activity, as well as the dearth of external awards or other of formal recognition of TMK's innovation history by third parties, presents a more mixed picture about company's openness to adopting new technology.

Evident of TMK's Openness to New Technology

  • At present, TMK's corporate website regularly and prominently highlights the company's commitment to innovation and the adoption of new technology.
  • For example, TMK's Mission web page emphasizes that TMK is an "innovative company" that leads "ongoing innovative developments," while TMK's What We Do web page highlights how the company has implemented "innovative scientific and engineering developments" to become a world leader it its industry.
  • Similarly, TMK's annual report prominently and regularly presents the company as one that prioritizes the adoption of new technology.
  • Notably, the title of the 2018 report is Leadership In Innovations, and there are numerous other references to how the company prioritizes innovation, such as the statement that TMK's "focus on innovation" is a strategic priority page 13.
  • More historically, TMK also demonstrated a commitment to the identification and adoption of new technology with the formal creation of a research and development facility in the Skolkovo Innovation Centre in 2013.
  • Moreover, TMK took a visible step towards recognition as a leader in the areas of technology and innovation with the company's publicized participation in the 2018 International Offshore Technology Conference, during which TMK highlighted its latest adoption of new technologies.
  • However, TMK and related media rarely reference how the company is pursing innovation or new technologies through its merger and joint venture activity.
  • For example, TMK's 2019 press release for its joint venture with the National Petroleum Company of Congo discussed innovation only within the context of how TMK would deploy its new technologies, as opposed to how the company would expand its access to advancements or innovations through the agreement.
  • Similarly, TMK's less recent, joint acquisition of IPSCO's North American plate and pipe business in 2008 did not reference innovation or new technology in related media coverage.

Research Strategy

Please note, for the purpose of this analysis, one resource from 2008 was utilized to provide additional credible, historic evidence related to TMK's openness to the adoption of new technologies. Although all other research sources used in this review were published in 2018 or 2019, the request for a more historic review of the company's commitment to technology and innovation required, in this instance, the use of a more historic document to substantiate key information around how a particular acquisition deal was understood by TMK and the media at the time the transaction took place.
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Part
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Tenaris Competitors: Technology Adoption, Part 4

By investing in companies for their advanced technology and implementing initiatives that are geared towards innovative technology, U.S. Steel Tubular has proved that it is more than willing/open to adopt new technology. Rows 23-24, column F of the attached spreadsheet have been completed.

U.S. Steel Tubular Partners with Big River

U.S. Steel Tubular Invests in Advanced High-Strength Steel Capabilities

  • Together with Kobe Steel, U.S. Steel Tubular announced in September 2017 that it was kicking off the construction of a "new continuous galvanizing line (CGL) at their subsidiaries’ joint venture, PRO-TEC Coating Company."
  • The new CGL, which was expected to have an annual capacity of 500,000 tons utilized innovative technology that would allow the company to create more advanced high-strength steels.
  • With the help of the proprietary technology it uses, U.S. Steel Tubular mentioned being able to meet its automotive customers' demands.

U.S. Steel Tubular Invests in Mon Valley Works

  • In May 2019, U.S. Steel Tubular announced that it was investing over a billion dollars for the construction of a sustainable endless casting and rolling facility at some of its Mon Valley Works plants.
  • The facility would utilize a "cutting-edge endless casting and rolling technology" that combines "thin slab casting and hot rolled band production into one continuous process."
  • According to the company's CEO, this deal is part of U.S. Steel Tubular's strategy to invest in leading and advanced technology that aligns with its vision.
  • The technology would also allow Mon Valley Works and other U.S. Steel Tubular facilities to optimize their production capacities.

U.S. Steel Tubular Enhances Operating Model

  • In October 2019, U.S. Steel Tubular announced that it was implementing an advanced organization structure and initiatives to serve their customers better.
  • The company stated that it was making more efforts to invest in leading and advanced technology.
  • It also mentioned its focus on promoting technological innovation by realigning it leadership team.

SUMMARY

  • Over the last two years, U.S. Steel Tubular has acquired a company for its innovative technology and adopted several new technologies.
  • The company has also announced its willingness to adopt new technologies as its main strategy.
  • The above examples show that U.S. Steel Tubular is very open to adopting new technology, as long as the technology aligns with its strategy.  
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Part
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Tenaris Competitors: Technology Adoption, Part 5

Voest Alpine A.G. has made numerous major acquisitions and investments to adopt brand-new technology that permitted the company to evaluate and continuously optimize all steps in real time. The requested information on Voest Alpine A.G. has been entered into row 23, column G and row 24, column G of the attached spreadsheet.


Summary of Findings


Research Strategy:

To find information on Voest Alpine's openness to adopting new technology, we first explored the company website, which provided information on its investments in new technology and acquisitions of companies to enhance and adopt new technology. Please note that for this analysis, we utilized some dated sources from the years 2013, 2016, etc., as they provide historical evidence related to the company's openness to the adoption of new technologies. The dated sources used are credible as they were the website of Voest Alpine A.G. itself.

Based on the company’s acquisitions and investments made in new technology, we concluded that the company actively embraces innovation and new technology. Also, the company has received a formal acknowledgment and the Global EcoVision Award in recognition of its innovative technologies, products, and services.
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Part
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Tenaris Competitors: Technology Adoption, Part 6

The EVRAZ Group has been very actively adopting new technology with several key acquisitions and investments that allow them to evaluate and continually optimize all process steps in the past four years. The complete information regarding how willing EVRAZ Group has been in adopting new technology is provided in the attached spreadsheet. A short brief of the findings is presented below.

Tenaris Competitors: EVRAZ Group

  • In 2015, EVRAZ and DANIELI signed a contract on technical modernization of the slab continuous casting machine into a billet casting machine. The total investments into the upgrade exceeded RUB 4.5 billion.
  • Also in 2015, EVRAZ NTMK commissioned two air separation facilities that would supply nitrogen, oxygen, and argon to its blast furnace and converter shops, which were 35% more energy-efficient compared to previous models.
  • In 2016, EVRAZ NTMK announced the start of a new blast furnace construction project, which gave the company an opportunity to maintain the production of pig iron at EVRAZ NTMK at 5 million tons per year.
  • In 2018, the company entered into an agreement with Air Liquide to construct the new oxygen production facility at the territory of the plant for the supply of air separation products for technological needs.
  • Also in 2018, EVRAZ started upgrading the Tashtagol ore mine. The project includes the commissioning of the Sibiryak skip shaft, which will be used to deliver materials and transport the extracted ore to the surface.

Research Strategy:

We were able to find the information within the company website by scanning through press media publications for the past four years. Based on the examples found, it is determined that the company is willing to adopt new technology.
Sources
Sources

From Part 01
Quotes
  • "This performance compares favorably against any of our competitors and, in the past years, we have established clear leadership in our sector, reflecting the efforts we have made over many years: in industrial excellence, product development, in our Rig Direct® service and in our global reach and financial strength. "
Quotes
  • "Oil country tubular goods (OCTG) is a family of seamless rolled products consisting of drill pipe, casing and tubing subjected to loading conditions according to their specific application. "
  • "Drill pipe is heavy seamless tube that rotates the drill bit and circulates drilling fluid. Pipe segments 30 ft (9m) long are coupled with tool joints. Drill pipe is simultaneously subjected to high torque by drilling, axial tension by its dead weight, and internal pressure by purging of drilling fluid. Additionally, alternating bending loads due to non-vertical or deflected drilling may be superimposed on these basic loading patterns."
  • "Casing pipe lines the borehole. It is subject to axial tension by its dead weight, internal pressure by fluid purging, and external pressure by surrounding rock formations. Casing is particularly exposed to axial tension and internal pressure by the pumped oil or gas emulsion."
  • "Tubing is pipe through which the oil or gas is transported from the wellbore. Tubing segments are generally around 30 ft [9 m] long with a threaded connection on each end."
From Part 02
Quotes
  • "The Oil Country Tubular Goods (OCTG) market in North America was valued at $11.57 billion in 2013 and is forecasted to reach $16.24 billion by 2019, growing at a CAGR of 4.80% from 2014 to 2019."
  • "By geography, the report is segmented into the U.S., Canada, and Mexico."
  • "North America is the biggest market for premium OCTG products, having the highest share of shale gas reserves in the world."
  • "This report also provides an extensive competitive landscape of companies operating in the OCTG market which include Tenaris SA, Vallourec, TMK, United States Steel Corporation, and Sumitomo. "
Quotes
  • "The Oil Country Tubular Goods Market in North America is projected to witness CAGR of 4.95% from 2014 to 2020 and it was estimated to be worth of $12.7 billion in 2014."
Quotes
  • "Oil Country Tubular Goods (OCTG) Market is valued at USD 47957.51 Million in 2018 and expected to reach USD 77110.10 Million by 2025 with the CAGR of 7.02% over the forecast period."
Quotes
  • "The global Oil Country Tubular Goods (OCTG) is currently estimated to be worth $58.02 billion and is expected to grow at a CAGR of 8.2 percent until 2026, according to Beroe Inc, a procurement intelligence firm."
  • "The direct cost/manufacturing accounts for 46 percent of the overall cost for OCTG, followed by raw materials for 30 percent of costs, overheads for 11 percent, and direct freight cost for 7 percent. "
From Part 04
Quotes
  • "In principle, one can only support these drives. The challenge for both customers and Vallourec is to find the right economic balance. We have to make sure whatever we develop locally has the critical mass and makes sense from an industrial standpoint. Our industry has huge fixed costs and therefore you need minimum volumes to make it sustainable. So we have to adapt the amount of local content to the accessible market."
Quotes
  • "Another important factor in upgrading the company is digitalization. We will have to significantly transform and adapt our technological and production processes to take advantage of the opportunities offered by new technologies."
Quotes
  • "In addition, Trade Controls and their implementation are fluid and may change due to diplomatic and political considerations outside of our control. Such changes, as well as public statements by government officials, could be significant, require us to take certain actions to be in compliance, adversely affect prevailing market prices of our common stock, have a reputational impact, or otherwise negatively impact our business."
From Part 08
Quotes
  • "The Innovation Ranking, published jointly by the Asociación Nacional de Empresarios de Colombia (ANDI) and Dinero magazine, named Tenaris's TuboCaribe welded pipes mill in Cartagena as one of the nine most innovative companies in Colombia."
  • "The ANDI review looked at 322 companies and divided the innovation ecosystems into three groups: consolidated, consolidating and emerging. Tenaris was ranked third in the emerging innovators category and second in the number of patents."
  • "Innovation has always been part of Tenaris's DNA," said Ricardo Prosperi, President of Tenaris Andean Region. "This recognition reinforces Tenaris’s efforts to transform manufacturing and the oil and gas industry. In this sense, digital tools play an important role in ushering in the future."
  • "Technology like Pipe Tracer®, a mobile application that gives customers updated pipe data and removes the need for manual tally and status reports, is one of the ways Tenaris drives innovation in oil and gas markets."
Quotes
  • "PipeTracer® is a unique tracking and traceability application that allows operators to identify Tenaris products on-site with mobile devices. By scanning codes located on the pipe body and thread protectors, customers can download product information, create digital tallies and generate Excel spreadsheets specific to the operation."
Quotes
  • "To further strengthen customer integration and supply chain efficiency, Tenaris is presenting a new digital platform – the Rig Direct® portal, which aims to streamline business processes through connecting Tenaris and its customers in a dedicated digital space for the management of product dispatches, the tracking of trucks from Tenaris service yards to customer rig sites, as well as invoicing."
  • "Tenaris has also been investing to expand its high-quality product line for offshore and onshore applications. On display at booth #3114, the latest addition to Tenaris’s well-established premium Wedge connections – TenarisHydril Wedge 667® for hazardous offshore drilling. Tenaris is also introducing a new range of large diameter connectors - EasyDock™ - to complement its high performance BlueDock® range of connectors. TenarisHydril EasyDock ™ is specifically designed for use in applications with less stringent performance requirements such as onshore and shallow water."
Quotes
  • "Tenaris announced today it has acquired pipe services and trucking company, Garrett LLC, in Oklahoma – an acquisition which complements its Rig Direct™ service model, streamlining the supply chain through the direct delivery of pipes."
  • "The Garrett facility strengthens our Rig Direct™ service offer for oil and gas customers, including small- and medium-sized companies, operating in the Mid-Continent,” said Luca Zanotti, Tenaris Vice President, USA."
Quotes
  • " Dopeless® technology makes thread compounds obsolete. A dry multifunctional coating, Dopeless® technology is applied in a fully automatic process at Tenaris mills worldwide. The process guarantees that the exact amount of lubricant is applied to each connection. In standard E&P operations thread compounds are applied manually in the field with a brush."
Quotes
  • "Tenaris has pushed the limits of its high pressure/high temperature technology, and through precision in execution in testing, delivery, running and expert services, generated outstanding results for its work on Total’s Culzean project."
  • "The Culzean gas field is located in the challenging waters of the North Sea, about 145 miles off the coast of Aberdeen. The field began production in June and is anticipated, at peak, to provide five percent of the United Kingdom’s gas demand."
  • "Tenaris supplied TenarisHydril Blue® Max and TenarisHydril Blue® Heavy Wall connections, and Dopeless® technology for the project’s complex wells in water depths of 90 meters to production zones located about 4,500 meters below the sea level with bottom hole pressure of 13,500 psi and bottom hole temperatures of 180C."
  • "To enhance running times, the Culzean team opted to run double stands. The running of 2,200 joints of TenarisHydril Blue® Max and Blue® Heavy Wall Dopeless® connections, with each double joint weighing up to 4.25 metric tons, was a success, with 99.6 percent of the connections torqued to the required value on the first make up."
  • "The use of Tenaris’s dry, multifunctional coating, Dopeless® technology, further enhanced the stand’s robustness in make up, while offering the customer the environmental and safety benefits the product offers due to the absence of compound, making for a cleaner rig site, as well as generating total pipe cost savings."
Quotes
  • "Tenaris S.A. (NYSE, Buenos Aires and Mexico: TS and MTA Italy: TEN) and Hydril Company (NASD: HYDL) jointly announced today that they have entered into a definitive merger agreement pursuant to which Tenaris will acquire Hydril for US$97 per share of Hydril’s common stock and US$97 per share of Hydril’s Class B common stock, payable in cash. "
  • "Hydril is a leading North American manufacturer of premium connections and pressure control products for oil and gas drilling and production, which has established an outstanding reputation in the industry for the quality and reliability of its technology. For 2006, Hydril reported revenues of US$503 million, operating income of US$132.2 million and net income of US$91.3 million under US GAAP. "
Quotes
  • " Tenaris S.A. has announced that it has entered into a definitive agreement to acquire from PAO TMK, a Russian company and manufacturer of steel pipe, 100% of the shares of its wholly owned U.S. subsidiary IPSCO Tubulars, Inc., for $1,209 million, on a cash-free, debt-free basis, which includes $270 million of working capital."
  • "IPSCO Tubulars is a U.S. domestic producer of seamless and welded OCTG and line pipe products, with an annual production capacity of 450,000 metric tons of steel bars, 400,000 metric tons of seamless pipe and 1,000,000 metric tons of welded pipe, and production facilities spread throughout the country."
  • "The acquisition would enhance Tenaris's position and local manufacturing presence in the U.S. market, extending its product offering and expanding its service footprintIt would add a first U.S. steel bar production facility at Koppel, PA, complement its seamless production in Bay City, Texas with a second facility in Ambridge, PA, and bring additional welded, heat treatment and finishing facilities to better serve customers throughout the country."
Quotes
  • "Tenaris S.A. is a holding company, which is a steel producer with production facilities in Mexico, Argentina, Colombia, United States and Guatemala. The Company supplies round steel bars and flat steel products for its pipes business. It operates through Tubes business segment. The Tubes segment includes the production and sale of both seamless and welded steel tubular products, and related services primarily for the oil and gas industry, principally oil country tubular goods (OCTG)."
From Part 12
Quotes
  • "At its unique pilot facility in Leoben-Donawitz, Austria, voestalpine is now conducting research into the production of new high-performance steels which are subsequently processed into special rails, quality rod wire, and extremely high-resistant OCTG by the Group’s companies in Styria."
Quotes
  • "voestalpine extends its welding technologies product portfolio with an acquisition in Italy. The voestalpine Group is driving its growth strategy forward with another acquisition, purchasing the Italian company Trafilerie di Cittadella S.p.a/FILEUR, based in Cittadella. "